annual report - FIAT SpA

� €1,307,059 thousand for VAT receivables as part of the VAT consolidation procedure, as required by the
Ministerial Decree of 13 December 1979 (as subsequently amended), and €1,712 thousand for other guarantees.
At 31 December 2010, there were no guarantees outstanding on behalf of third parties (the guarantee issued on behalf
of the joint venture Hua Dong Teksid Automotive Foundry Co. Ltd., amounting to €2,780 thousand at 31 December
2009, expired during 2010).
In relation to guarantees of approximately €1,320 million outstanding at 31 December 2010 issued on behalf of
companies transferred to Fiat Industrial Group under the Demerger, at the date of these financial statements that
commitment had been reduced by €553 million as a result of repayment of the underlying loans or transfer of
guarantee obligations to Fiat Industrial S.p.A. and consequent release of Fiat S.p.A. from its commitments. For
amounts still subject to guarantees from Fiat S.p.A., agreements have been reached with creditors concerning the
transfer of those guarantee obligations to Fiat Industrial S.p.A. and are in the process of being formalized.
In addition:
� in 2005, Fiat S.p.A. provided guarantees on credit facilities in local currency, equivalent to approximately €58
million, granted by Citibank to the Group’s Indian subsidiaries New Holland Fiat (India) Private Ltd. and Comau
India Private Limited. As at 31 December 2010 (as also at 31 December 2009) these credit facilities were
unutilized;
� in 2005, in relation to the early collection by Fiat Partecipazioni S.p.A. of the residual consideration for the sale of
the aviation business, Fiat S.p.A. is jointly and severally liable with Fiat Partecipazioni S.p.A. to the purchaser,
Avio Holding S.p.A., should Fiat Partecipazioni S.p.A. fail to pay the compensation (following either an arbitration
award or an out-of-court settlement) provided for by the sales agreement signed with the seller in 2003. Similarly,
in connection with the sale of the controlling interest in the railway business, Fiat S.p.A. is liable to the purchaser,
Alstom N.V., for any failure of the company that sold the business (now Fiat Partecipazioni S.p.A.) to comply with
the contractual compensation obligations.
Commitments
During 2010, Fiat S.p.A. did not enter into any agreements or contracts which resulted in the assumption of significant
new commitments. The residual commitment (€5,575 thousand at 31 December 2009), in the name and on behalf of
Fiat S.p.A. and its subsidiaries under the sponsorship agreement signed with Juventus Football Club S.p.A. in May
2007 for the 2007-2008, 2008-2009 and 2009-2010 seasons, was satisfied. Beginning with the 2008-2009 season,
these sponsorship costs were borne by the subsidiary CNH Global N.V.
Teksid
Fiat S.p.A. is subject to a put option held by Renault (with reference to the original 33.5% investment in Teksid, now
15.2%).
In particular, Renault has the right to sell its interest in Teksid to Fiat in the event of:
� a breach in application of the protocol agreement and admission to receivership or other administrative
proceeding;
� Renault’s investment in Teksid falling below 15% or Teksid deciding to make a significant strategic investment
outside the foundry sector;
� control of Fiat being acquired by another automaker.
The exercise price of the option is established as follows:
� for the original 6.5% of the share capital of Teksid, the initial investment price increased by a given interest rate;
� for the remaining amount of share capital of Teksid, the share of the accounting net equity at the exercise date.
Contingent liabilities
In connection with significant asset divestitures carried out in prior years, Fiat S.p.A. directly or indirectly through its
subsidiaries provided indemnities to purchasers with the maximum amount of potential liability under these contracts
generally capped at a percentage of the purchase price. These liabilities primarily relate to liabilities potentially arising
from a breach of representations and warranties under these contracts and, in certain instances, environmental or tax
matters, generally for a limited period of time. At 31 December 2010, potential obligations relating to these indemnities
were approximately €799 million (approximately €827 million at 31 December 2009), net of provisions set aside by
individual companies. Certain other indemnities have been provided that do not limit potential payment and, as such, it
is not possible to estimate the maximum potential future payments that could result from claims made under these
indemnities.
Certain claims for damages are still pending against Fiat S.p.A. Given this fact and the specific conditions of the related
Fiat S.p.A. – Statutory Financial Statements at 31 December 2010 304